Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



German delegation for water, wastewater management to visit Egypt this month: ambassador Nunn
Government's war against corruption must continue, says ambassador
Published in Daily News Egypt on 08 - 02 - 2020

Egyptian exports to Germany amounted to about $1.5bn annually, while the value of German exports to Egypt is approximately $3bn.
German ambassador in Cairo Cyrill Nunn spoke to media for the first time since he took over the position in August 2019. He told Daily News Egypt that Egyptian exports to Germany are mostly textiles, raw materials, and agricultural products, however, petrochemical and industrial exports have recently increased.
Egyptian exports to Germany amounted to about $1.5bn annually, while the value of German exports to Egypt is approximately $3bn.
Nunn added that commercial relations between German and Egyptian banks and insurance companies are close now. Egypt has a respected credit rating by international agencies, as well as a good macroeconomic performance.
The ambassador disclosed that the banking sector in Egypt was not always completely transparent to external parties and the new law regulating the sector would help improve the situation.
What is the size of German investments in Egypt and which sectors?
We have about 1,180 companies operating in Egypt in different sectors, in which the German side has a majority or a minority stake of the capital. The total German capital in those companies is approximately $2.3bn.
Foreign investment in Egypt has traditionally been strong, mainly in the energy sector. Since last year, Germany increased investments in oil and gas exploration. Wintershall Dea, gas and oil operator, is competing for additional exploration areas and will invest accordingly. There are also major German investments in mining, electricity generation, and tourism.
It is also important in this context to have a look at the Egyptian workforce in those companies in which the German side holds the majority of the capital, which amounts to 25,000 employees. Moreover, there are about 175,000 employees in the companies in which German investors hold a minority stake.
From your point of view, what are the sectors that can attract foreign direct investments (FDIs)?
Egyptian industry is growing at an annual rate of 5-6%, and this percentage may rise further in the coming years. We see opportunities in all sectors, especially in the fields in which the Egyptian government creates legal frameworks that facilitates investment, as in the case of power generation. The openness in the mining sector is also a good indicator, and it is welcomed. There are many companies in logistics and transportation sectors that closely monitor the Egyptian market.
Is Egypt on Germany's investment map? Have you received any market inquiries recently? If so, in which sectors?
Of Course, several German companies have inquired about the market conditions in Egypt last year. There is intensive German participation in trade fairs and exhibitions in Egypt.
Over and above, our Federal Ministry for Economic Affairs and Energy is actively working to encourage visits by delegations of German companies. For example, a German delegation interested in water and wastewater management will visit Egypt early February.
How do you see Egypt's business environment?
Egypt's legal environment has improved significantly over the past years which impacted positively on the business environment. The macro conditions of the economy allow the conversion of currencies in both directions. Egypt is also a destination close to Europe, with direct flights between Egypt and Germany taking only 3-4 hours. It is also very important that Egypt has young people eager to be trained and educated, whether in industry or service sectors. Besides, thanks to many German schools, we have now many Egyptian youth who can speak Arabic and German fluently, so that they can apply to jobs that require this skill.
What are the reforms that investors expect from Egypt to boost FDIs?
Basically, structural reforms must be implemented as agreed with the International Monetary Fund (IMF). Bureaucracy and red tape must be further reduced, and Egypt should simplify its administrative processes. The government's war against corruption must continue. It is also important to keep in mind that in order to liberalise full creative power of the private sector and maximise job opportunities, Egypt should continue progressing in the field of civil liberties.
How much is the value of Egypt-Germany trade exchange?
German exports to Egypt reached approximately $3bn annually, most of which are industrial products. Egyptian exports to Germany recorded roughly $1.5bn annually, most of which are textiles, raw materials, and agricultural products, but also increasingly there are petrochemical and industrial products. This is a good sign that Egypt's industry has become more competitive in the global market, especially in the field of electrical and electronic equipment, plastics, and finished industry.
We must also mention that the balance of payments between the two countries is better than what these numbers may indicate because many German tourists visit Egypt every year, and one of those tourists may also see Egypt as a destination for future business.
How many German companies operate in Egypt?
German companies are not obligated by law to register at the embassy. In fact, we know that the aforementioned 1,180 companies include about 250 companies that have an active membership in the German-Arab Chamber of Industry and Commerce.
Have any Egyptian banks obtained financing from German banks recently?
There are close commercial relations between several German and Egyptian banks and insurance companies. Egypt has a respected credit rating by international agencies, and a good macroeconomic performance. However, the banking sector in Egypt is not always completely transparent to outside parties, but the new law regulating the sector will help improve the situation.
Do you expect new German investments to be announced this year?
I'm sure we'll see more business this year. We also hope for some new investments.


Clic here to read the story from its source.